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Global Service Value Chain in Japan: Inbound tourism cases

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  • KONISHI Yoko

Abstract

Japanese manufacturers are becoming increasingly dependent on non-manufacturing functions such as sales, leasing, and after-sales services as their main source of value added in global value chains (GVCs). We discuss the role of services in GVCs in observing the service industry's contributions to exports and growth of the Japanese economy. The service industry affects trade and the global economy in two ways. One is by exports of services directly to partner countries. Another is through observation of the services embodied in the manufacturing process for parts, intermediate products, or final products, which is known as indirect trade. In this paper, we focus on tourism because of Japan's favorable tourism market, which has grown rapidly in recent years. Also, tourism has a unique feature known as high tradability service and affects various industries (e.g., transport, retail, wholesale, restaurant, agricultural production, cleaning, information communication, etc.). In order to understand Japan's tourism GVCs, we propose the GVC map following Gerreffi et al. (2011) and estimate the ripple effects of the inbound boom to the Japanese economy using the input-output (I-O) table conducted by the Ministry of Economy, Trade and Industry (METI).

Suggested Citation

  • KONISHI Yoko, 2017. "Global Service Value Chain in Japan: Inbound tourism cases," Policy Discussion Papers 17011, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:polidp:17011
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    References listed on IDEAS

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    4. Robert C. Johnson, 2014. "Five Facts about Value-Added Exports and Implications for Macroeconomics and Trade Research," Journal of Economic Perspectives, American Economic Association, vol. 28(2), pages 119-142, Spring.
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    6. KONISHI Yoko & NISHIYAMA Yoshihiko, 2010. "Productivity of Service Providers: Microeconometric measurement in the case of hair salons," Discussion papers 10051, Research Institute of Economy, Trade and Industry (RIETI).
    7. Robert Koopman & William Powers & Zhi Wang & Shang-Jin Wei, 2010. "Give Credit Where Credit Is Due: Tracing Value Added in Global Production Chains," NBER Working Papers 16426, National Bureau of Economic Research, Inc.
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